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Business / Economy

Chinese growth a boon for world

(Xinhua) Updated: 2015-08-05 16:25

BEIJING - China is taking resolute pro-growth moves including manufacturing and infrastructure investment against economic headwinds.

Their necessity was indicated as the new Caixin purchasing managers' index declined to a two-year low of 47.7 in July from June's 49.4, suggesting weakness in the manufacturing sector.

Pro-growth measures

The National Development and Reform Commission (NDRC), China's top economic planner, released an action plan on Tuesday to improve the core competence of six manufacturing sectors from 2015 to 2017.

The NDRC has several projects planned for railway transportation equipment, ship making and oceaneering equipment, industrial robots, new energy vehicles, modern farm machinery and advanced medical devices and medicine.

The planner counts on the projects to facilitate breakthroughs in key technology, nurture manufacturers with global influence and create brands recognized around the world.

To realize the goals, the NDRC vowed to attract private investment, increase financial support and encourage acquisitions of foreign high-tech manufacturers.

"Manufacturing is key in transforming China into an innovation-driven economy. Breakthroughs in manufacturing technology and equipment can bring positive changes to the industrial structure, layout and development mode of a country," said Zhou Ji, president of the Chinese Academy of Engineering.

Manufacturing output accounted for over one third of China's GDP last year, 63.6 trillion yuan ($10.4 trillion).

The NDRC vowed to invest in more sophisticated manufacturing projects.

In the first six months of 2015, it has approved investment worth of 3.3 trillion yuan in 228 infrastructure projects concerning mainly oil, gas, electricity and Internet facilities.

"Taking railway transportation as an example, investments in this sector will add up to 300 billion yuan this year, exceeding the whole sum of 285.7 billion yuan registered last year," said Li Guoyong, with the NDRC department of basic industries.

As for rising inflation concerns triggered by large liquidity injections, the People's Bank of China said on Tuesday that it will use a variety of policy tools to fine tune the market, keep moderate liquidity and achieve reasonable credit and private financing growth.

The central bank said it will continue to improve the lending structure, lower financing costs, keep the yuan stable, stabilize financial market expectations and boost the real economy.

Confidence among entrepreneurs

Walmart's purchase of Yhd.com, a Chinese e-commerce platform, sparked applause from the Ministry of Commerce (MOC) on Tuesday.

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